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Persistence and economic effects of technological innovations: a dynamic and sequential analysis of Uruguayan manufacturing firms” Economics of Innovation and New Technology

ISSNISSN/ISBN: 1043-8599
ISSNAño: 2017
AutorAutor/es: Muinelo, Leonel, and Suanes Martinez, Macarena
EditorialEditorial: Economics of Innovation and New Technology
This paper analyzes the long-term relationship between R&D, innovations and productivity in 400 Uruguayan manufacturing firms during the period 2001 to 2009 based on a modified version of the structural model of Crepon, Duguet and Mairesse (CDM). The paper also analyses thoroughly the decision of these firms to engage in R&D activities by using a novel categorical dependent variable, which takes three values: non-performance R&D activities, occasional performance or continuous performance over the period. Furthermore, the study investigates whether these manufacturing firms innovate persistently or discontinuously over the period. The results suggest a positive link between the intensity of R&D activities and the generation of product and process innovations. They also indicate that innovation probability is temporal persistent at the firm–level only for product innovations. Finally, the empirical findings reveal that these technological innovations have a positive effect on firm’s productivity.
 
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